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Stronger yuan fuels London buying spree
By Cao Qian |
July 23, 2010, Friday
|
Online Edition
Online Edition
THE stronger yuan coupled with the falling price of properties in the United Kingdom have prompted Chinese to invest in London real estate, a major international property adviser said today.
East and South Asian buyers, particularly those from the Chinese mainland and Hong Kong, now account for 35 percent of sales in new developments in London, making Chinese the most active overseas investors in the city.
"The recent tightening policy toward Chinese domestic property investment has led to an increased appetite for overseas real estate purchases," said Randall Hall, chief executive officer of Savills China. "The appreciation of renminbi against major currencies over the past two years also meant that Chinese buyers could acquire foreign real estate assets at a bargain."
During the past two years, the Chinese yuan has appreciated about 32 percent against British sterling.
At the meantime, the average cost of a UK home rose 6.3 percent from a year earlier to 166,203 pounds in June, Halifax, the mortgage lending division of Lloyds Banking Group Plc, said on July 8.
Prices were 7.5 percent above their April 2009 trough, while 17 percent below their peak of August 2007.
Savills China, which established its overseas property sales team in 2009, has seen more Chinese buyers venture into overseas markets over the past few years, primarily on expectations the sterling exchange rate will rise in the near future and business opportunities are supposed to grow as the 2012 London Olympic Games are approaching.
East and South Asian buyers, particularly those from the Chinese mainland and Hong Kong, now account for 35 percent of sales in new developments in London, making Chinese the most active overseas investors in the city.
"The recent tightening policy toward Chinese domestic property investment has led to an increased appetite for overseas real estate purchases," said Randall Hall, chief executive officer of Savills China. "The appreciation of renminbi against major currencies over the past two years also meant that Chinese buyers could acquire foreign real estate assets at a bargain."
During the past two years, the Chinese yuan has appreciated about 32 percent against British sterling.
At the meantime, the average cost of a UK home rose 6.3 percent from a year earlier to 166,203 pounds in June, Halifax, the mortgage lending division of Lloyds Banking Group Plc, said on July 8.
Prices were 7.5 percent above their April 2009 trough, while 17 percent below their peak of August 2007.
Savills China, which established its overseas property sales team in 2009, has seen more Chinese buyers venture into overseas markets over the past few years, primarily on expectations the sterling exchange rate will rise in the near future and business opportunities are supposed to grow as the 2012 London Olympic Games are approaching.
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